FOSTER'S Group Pacific (FGP) has recorded increased sales revenue for its Fiji operations — up 6.8 per cent to $51.526million from $48.263million for the same period last year.
Increased sales revenue was largely driven by higher pricing required to partially offset the impact of higher input costs.
In its annual report released by the South Pacific Stock Exchange (SPSE) yesterday, FGP chairman John Murphy said the local operation's of beer sales volume increased by 2.5 per cent to 1.969 million nine-litre cases this year compared to 1.921 million nine-litre cases for the same period last year.
Spirits and ready-to-drink (RTD) product volumes, he said showed a strong growth, increasing by 9.7 per cent to 0.237 million nine-litre cases, compared to 0.216 million nine-litre cases for the same period last year.
"Cost of sales increased by 13.3 per cent to $35.523million from $31.362million for the same period last year, due to input price increases (raw materials and services) driving gross margin down 5.3 per cent to $16million from $16.9million last year," Mr Murphy said.
"Selling, marketing, distribution and administration expenses increased by 6.7 per cent to $9.127million from $8.556million last year, driven by increased investment in brand advertising, trade promotion activities, and trade marketing in order to drive higher sales volumes," he said.
The annual report noted that operating profit before interest and tax for the 12 months decreased by 20.3 per cent to $7.214 illion from $9.048million last year.
Meanwhile, FGP's Samoa operation recorded an after tax loss of SAT$1.1million ($F800,000) compared to an after tax profit of SAT$0.2million ($F156,426) in June 2011, driven by bottle and crate fraud one-off costs, lower soft drink sales volumes, higher cost of sales driven by imported raw material input costs, and higher selling, marketing and distribution expenses.
Samoa's beer sales also increased, rising by 0.6 per cent to 0.671 million nine-litre cases this year from 0.667 million nine-litre cases in 2011.
The report stated that soft drink sales volumes decreased by 4.7 per cent to 0.470 million nine-litre cases this year from 0.493 million nine-litre cases last year.
The group's operating profit before income tax decreased by 34.9 per cent to $6.039million in 2012 from $9.277million last year.